F.T.C. Not Afraid Of Difficult Years

Press, Volume CVII, Issue 31409, 30 June 1967, Page 14

F.T.C. Not Afraid Of Difficult Years

(New Zealand Press Association) AUCKLAND, June 29. If the Government’s restraining policy was effective, total retail sales would decrease, but directors of the Farmers’ Trading Company, Ltd., were not fearful of one or two difficult years, the chairman (Mr W. Calder Mackay) told the annual meeting yesterday.

The sales target for the year to March 31 last had been £16,000,000, he said.

If the effect of restrictions on hire-purchase selling had not been felt during the last quarter, this target would have been exceeded. As it was sales rose £605,542 to £15,769,636. Increased sales in the main store in Auckland had been achieved in spite of greater suburban competition and increased cost of public transport.

Increases in wages had raised the company’s wage bill by £165,514, he said. Profits could be seriously eroded if retailers did not keep a close watch on expenses.

During the year there had been difficulties of supply. Quite often manufacturers had accepted orders months ahead of a delivery date, but due to unforeseen circumstances were unable to deliver the full quantity or did not meet the delivery date. The retailer thus not only lost sales, but could be regarded as inefficient. To maintain stocks in 65 branches, the company had to place orders to the value of £62,000 every working day. Stores Results Results at Otara had been better than estimated, and the Southmall store should also prove a valuable addition.

The cost of conversion to decimal currency would be £44,000, but savings in future years should be advantageous. The company was still receiving inquiries locally and from overseas for information on its car park. Last year this handled 537,008 cars, with 5639 on a single day.